The Demand for High-Speed Access to the Internet:

The Case of Cable Modems
  • Don Kridel
  • Paul Rappoport
  • Lester Taylor
Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 39)

Abstract

The demand for Internet access continues to grow at a dramatic rate. While the primary mode of access has been dial-up service, recent innovations have allowed even residential subscribers the option of obtaining affordable highs-peed or broadband access. In particular, cable television companies have begun to offer cable modems and many local exchange telephone companies are beginning to offer various forms of digital subscriber line (DSL) service. This chapter analyzes the demand for broadband access to the Internet by US households. Using a very large data set of US households with over 32,000 observations, we estimate a discrete-choice model for the demand for Cable Modems. Preliminary elasticity estimates indicate cable-modem Internet access demand to be price-elastic.

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References

  1. Kridel, D. J., P. R. Rappoport, and L. D. Taylor (1999), “An Econometric Analysis of Internet Access,” in The Future of the Telecommunications Industry: Forecasting and Demand Analysis, edited by David G. Loomis and Lester D. Taylor, Kluwer Academic Press, 1999, p. 21–42.Google Scholar
  2. Rupp, B., R. Edell, and P. Varaiya (1998), “Towards An Integrated Services Internet: The Demand Side of Things-Early Results From The INDEX Project,” presented at the 12th Biennial Meetings of the International Telecommunications Society, Stockholm, Sweden, June, 1998.Google Scholar
  3. Taylor, L. D. (1994), Telecommunications Demand in Theory and Practice, Kluwer Academic Publishers, Dordrecht/London/Boston.CrossRefGoogle Scholar
  4. Train, K. E. (1986), Qualitative Choice Analysis, MIT Press, Cambridge MA.Google Scholar

Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Don Kridel
    • 1
    • 2
    • 3
  • Paul Rappoport
    • 1
    • 2
    • 3
  • Lester Taylor
    • 1
    • 2
    • 3
  1. 1.University of Missouri-St. LouisUSA
  2. 2.Temple UniversityUSA
  3. 3.University of ArizonaUSA

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